Tesla, Musk must face shareholder lawsuit over going-private tweet [Yahoo! Finance News]
Tesla, Inc. (TSLA)
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Source: Yahoo! Finance News
FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in ShanghaiBy Jonathan StempelReuters) - A federal judge said Tesla Inc and Chief Executive Elon Musk must face a lawsuit claiming they misled shareholders when Musk tweeted that he had secured funding to take his electric car company private in a $72 billion transaction.U.S. District Judge Edward Chen ruled on Wednesday that shareholders could try to prove Musk intended to defraud them with his Aug. 7, 2018 tweet and follow-up messages about plans for his Palo Alto, California-based company.The judge said shareholders could also try to prove Musk's tweet was the "proximate cause" of volatility in Tesla's stock price that caused billions of dollars of losses.Tesla did not immediately respond to requests for comment.The lawsuit arose after Musk stunned investors on Aug. 7, 2018 by announcing on Twitter: "Am considering taking Tesla private at $420. Funding secured."Musk’s tweet helped push Tes
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